IDENTIFYING THE REASONS WHY UiTM ...

IDENTIFYING TH E REASONS WH Y UiTM ACCOUNTIN G GRADUATES D O NO T BECOME ACCOUNTANT S

INSTITUT PENYELIDIKAN , PEMBANGUNA N DAN PENGKOMERSILA N UNIVERSITI TEKNOLOG I MAR A 40450 SHA H ALA M

BY: NORAINIMOHD NASI R JAMALIAH SAI D ERLANE K GHAN I

2005

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Tarikh : 15Mei200 5 No. Fai l Proje k : 2 0 4 3 6 Surat kelulusan : 6 0 0 - B R C / S K K . 5 / 3 / 8 9

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P e n o l o n g Nai b C a n s e l o r (Penyeiidikan ) Institut Penyeiidikan , P e m b a n g u n a n d a n P e n g k o m e r s i l a n UiTM, Sha h Ala m

Y B h g . Prof ,

DETERMINING T H E R E A S O N S W H Y UIT M A C C O U N T I N G G R A D U A T E S D O NO T BECOME ACCOUNTANT S

Merujuk k e p a d a perkar a d i atas , b e r s a m a - s a m a in i disertaka n 2 (dua ) naska h L a p o r a n Akhi r Penyeiidika n bertaju k "Determinin g t h e R e a s o n s W h y UiT M A c c o u n t i n g G r a d u a t e s D o No t B e c o m e Accountants" . Untu k m a k l u m a n Y B h g Prof, terdapa t sediki t p e m b a h a n k e p a d a taju k penyeiidika n ini . Taju k asa l penyeiidikan iala h "Identifying The Factors That Discourage Accounting Graduates From Becoming Accountants". Pembaha n in i dibua t hasi l dar i p e r b i n c a n g a n dala m Kursus 'Qualitativ e R e s e a r c h Methodology ' y a n g tela h dianjurka n ole h Continuou s Education R e s e a r c h Center , Institu t P e r k e m b a n g a n Pendidikan , U i T M p a d a bula n Jun 2004 . S e k i a n , terim a k a s i h .

Y a n g bena r

PROF MADY A NORAIN I MOH D NASI R Ketua Projek Penyeiidika n

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PROJECT TEA M MEMBER S

v NORAIN I MOH D NASI R Project Leade r

Signature

JAMALIAH SAI D Project M e m b e r

ERLANE K GHAN I Project M e m b e r

Signature

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BUREAU O F RESEARCHJf c CONSULTANCY

Universiti Teknologi M a r a

Biro Penyeiidikan dan Perundingan Universiti Teknologi MAR A 40450 Shah Alam, Malaysi a Fax: 03-5544209 6 Tel: 03-55442094 / 5 / 3 / 2 Website : www.uitm.edu.my/brc

Penolong Naib Canselor (Penyeiidikan) 03-5544 2094/5 [email protected]

Koordinator Penyeiidikan (Sains dan Teknologi ) °3-5544 2091 ^ [email protected]

600-BRC/SKK.5/3/809 8 Osos 2003

Surat Kami Tarikh

Encik Mohd Halil Marsuki Penolong Akauntan Unit Kewangan Zon 17 Universiti Teknologi MARA Shah Alam Tuan P E R L A NT I K AN B A G I M E N J A L A N K A N P E N Y E L I D I K A N

Koordinator Penyeiidikan (Sains Kemasyarakatan & Kemanusiaan) 03-55442097 [email protected]

Koordinator Perundingan (Kewangan) 03-5544 2090 [email protected]. itm.edu.my

Koordinator Perundingan 03-5544 2100 [email protected]

Penolong Pendaftar 03-5544 2092 intan [email protected]

Merujuk kepada perkara di atas, bersama-sama ini dimajukan salinan surat kelulusan menjalanka n penyeiidika n untu k pensyara h dar i Pusa t Perkembangan Pendidikan; 1. S o l v i n g U s i n g Partitionin g L a r g e S c a l e C h e m i c a l Equation s o n a Multiprocessor Syste m

Ketua Projek : Kos Projek :

Enci R

k Sofwan b Hj Hasbullah M 9,590.00

2. Identifyin g th e Factor s tha t D i s c o u r a g e A c c o u n t i n g G r a d u a t e s f r o m B e c o m i n g Accountant s

Ketua Projek : Kos Projek R

Pua

n Hjh Noraini Mohd Nasir M 9,995.0 0 ( m e n g g u n a k a

dalaman yan EDC).

g diperuntukka

Sekian, untuk tindakan pihak tuan selanjutnya Terima kasih.

Pegawai Eksekutif 03-5544 2098 [email protected]

Pentadbiran 03-5544 2093 Unit Kewangan Zon 1 7 03-5544 2099 03-5544 3440 03-5544 2089

Yang benar INTAN SYARHAID A SHAARAN I

Penolong Pendafta r b/p Penolong Naib Canselor (Penyeiidikan) s.k: 1

. Ketu

a Pusat Perkembangan Pendidikan

453mohdh @ salam. itm. edu. my

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n gera n Untu

n k

2. Shiree n bt Haron C ( D - -Xstr^ £ Koordmator UPP Pusat Perkembangart Pendidikan 3. Enci

k Sofwan b Hj HasbuIIah Ketua Projek Pusat Perkembangan Pendidikan

4. Pua

n Hjh Noraini Mohd Nasir Ketua Projek Pusat Perkembangan Pendidikan

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c

i

ACKNOWLEDGEMENT

We woul

d lik

e t o than k UiTM'

s Institut

e o f Research

, Developmen

t an

d

Commercialisation (IRDC ) fo r th e opportunit y t o d o thi s research . Than k yo u als o t o th e Directo r of Institut e o f Educatio n Developmen t (InED ) UiT M an d InED' s Coordinato r o f Research , Development an d Commercialisatio n Unit , fo r supportin g u s i n thi s research . T o ou r famil y members, w e than k yo u fo r you r suppor t an d patienc e throughou t th e projec t period . We woul d like t o expres s ou r heartfel t appreciatio n t o al l th e participant s i n thi s stud y fo r thei r tim e an d willingness t o b e interviewed . Withou t thei r participation , thi s stud y woul d no t b e successful . Finally, ou r sincer e thank s als o goe s t o ou r Researc h Assistant s an d everyon e els e wh o hav e been directly or indirectly involve d i n this research from the start to its successful completio n

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TABLE O F CONTEN T

Page ACKNOWLEDGEMENT v LIST O F TABLE S vii

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APPENDIX vii

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ABSTRACT «

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CHAPTER ON E INTRODUCTIO

N1

1.0 Deman d for Accountants 1 1.1 Th e Accounting Professio n i n Malaysia 2 1.2 Proble m Statemen t 5 1.3 Stud y Objective s 6 1.4 Significanc e o f Study 6 1.5 Organizatio n o f the Research Repor t 7 CHAPTER TW O LITERATUR

E REVIE W 8

2.0 Introductio n 8 2.1 Th e Rol e of Accountants i n Developing th e Econom y 8 2.2 Shortag e o f Accountants 1

0

2.3 Students ' Perceptio n o f Accounting a s a Caree r 1

2

2.4 Factor s Influencin g Caree r Choic e 1

5

2.5 Change s i n Careers Among Professional s 1

7

2.6 Chapte r Summary 1

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CHAPTER THRE E RESEARC

H METHODOLOG Y 1

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3.0 Introductio n 1

9

3.1 Participant s 1

9

3.2 Intervie w Proces s 2

1

3.3 Analysis 2

2

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Page CHAPTER FOU R RESULT

S2

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4.0 Majo r Categorie s 2

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1. N o added benefi t for current employment 2

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2. Difficult y in filling in the membership forms 2

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3. Hig h cost of membership 3

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4. Lac k of ambition to become an accountant 3

1

4.1 Suggestion s to Encourage Mor e Bumiputer a Student s to 3 Become Accountant s

5

1. MI A should be more proactive 3

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2. UiT M shoul d be more proactive 3

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CHAPTER FIV E DISCUSSIO

N AN D CONCLUSIO N 3

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5.0 Discussio n 3

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5.1 Reason s for UiTM Accounting Graduates No t Becomin g 3 Members of MIA and Suggestion s to Increas e Membership

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1. Difficult y to fill in the membershi p for m 3

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2. Hig h cost of membership 4

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3. N o added benefi t 4

1

4. Lac k of ambition 4

2

5.2 Conclusio n 4

4

5.3 Futur e Researc h 4

5

REFERENCES 4

6

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LIST O F T A B L E S

Table Titl Number

e Pag

e

1a Demographi

c Detail s of Participants - Categor y 1 2

4

1b Demographi

c Detail s of Participants - Categor y 1 2

5

APPENDIX

Appendix Titl Number 1 Practica

e l Experienc e Recor d

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Determining The Reasons Why UiTM Graduates Do Not Become Accountants

ABSTRACT

In Malaysia, one mus t be a member of the Malaysian Institute o f Accountants befor e on e can profess onesel f a s a n accountant . Thre e year s workin g experienc e i n th e accountin g field i s require d before on e i s eligibl e t o appl y fo r membership i n the Institute . On e als o needs to have a first degre e i n accounting fro m any one o f the local publi c universities or professional qualification s suc h a s th e ACCA , CIM A o r MICPA . Th e loca l universitie s produce hundred s o f thes e accountin g graduate s ever y yea r ye t no t al l o f the m becom e members of MIA. This study looks at the reasons why UiTM accounting graduate s do not become member s o f th e Institut e an d thereb y accountants . 1 0 participant s wer e interviewed. A n analysi s o f thei r intervie w transcripts , usin g th e constan t comparativ e method, disclose d th e followin g reason s why the y d o no t register as members: n o adde d benefit t o curren t employment , difficult y i n fillin g i n the applicatio n forms , hig h cos t o f membership and lack of ambition to become accountants .

Keyword: MIA membership, accounting graduates

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CHAPTER ON E INTRODUCTION

1.0 Deman d fo r Accountant s

The busines s environmen t i s constantl y evolving . Thi s changin g environmen t ha s pu t pressure o n th e accountin g professio n suc h tha t th e rol e o f th e accountant s i s n o longe r limited t o doin g financia l accountin g an d auditing . Accordin g t o th e Presiden t o f th e Malaysian Institut e o f Accountant s (MIA) , Dr. Abdu l Sama d Haji Alias , the accountant s of today have take n the role of business partners by providing mor e value-added service s (MIA Team , 2002) . Thu s thi s implie s tha t increase s i n th e numbe r o f busines s entitie s would lead to the increase in the demand for accountants.

In Malaysia , mor e accountant s ar e neede d t o provid e suppor t fo r th e growin g busines s environment i n lin e wit h the fas t economi c growt h o f th e countr y (Moh d Iskandar , Sye d Adwam Waf a an d Khundari , 2002a) . Currently , ther e i s a shortage o f accountant s i n the country. Malaysi a need s abou t 65,00 0 accountant s b y th e yea r 202 0 (Abdullah , 2001) . According t o th e Chairma n o f MI A Exa m Committee , Datu k Abdu l Hali m Mohyiddi n , there were 18,00 0 registere d member s a s of March 2003 (Ekonomi , 2003 ) an d the recent statistics obtaine d fro m MIA' s Membershi p Departmen t showe d tha t th e numbe r o f members stoo d a t 20,23 5 a s of Marc h 2004 , a n increase o f onl y 2,23 5 member s ove r a twelve-month period . Thi s i s equivalen t t o a n averag e increas e o f 18 6 member s pe r


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month. I f th e membershi p continue s t o gro w a t this rate , Malaysi a ma y no t b e abl e t o meet the targeted number of accountants by 2020.

Although ther e i s a shortag e o f accountant s i n th e country , ther e i s n o shortag e o f students takin g u p accountancy . Th e numbe r o f accountin g student s enrolle d i n th e institutions o f highe r learnin g ha s bee n increasin g ove r th e year s (Moh d Iskanda r e t al. , 2002a). However, the Deputy Education Minister, Datuk Hon Choon Kim, was quoted in The Sta r (2003) a s sayin g tha t the numbe r o f qualifie d accountant s graduatin g eac h year from both the private an d public universities i n the country was not sufficient t o need the needs of the nation.

1.1 The Accounting Profession in Malaysia

The accountin g professio n i n Malaysia i s highl y regulated . Prio r to 1967 , th e professio n was pretty muc h regulated by the Malaysia n Association o f Certified Publi c Accountant s (MACPA). I n 1967 , th e regulator y rol e wa s take n ove r b y th e Malaysia n Institut e o f Accountants (MIA) , a body establishe d unde r the Accountant s Ac t 1967 . Unde r the Act , a person i s prohibited fro m calling himsel f an accountant unless h e i s a member o f MIA. To appl y fo r MI A membership , on e mus t eithe r hav e a recognize d professiona l accounting qualificatio n o r ha s a n accountin g degre e fro m loca l universitie s an d hav e three years work experience i n a public accounting fir m or other accounting related areas.


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First Schedule , Par t 1 , o f th e Ac t list s dow n th e loca l universitie s whos e accountin g degrees are recognized: o Bachelo r of Accounting (Honours) , Universiti Teknologi MAR A (UiTM ) o Advance d diploma in Accountancy, UiT M (u p to 1996 ) o Bachelo r o f Accountin g (Honours) , Universit i Kebangsaa n Malaysi a (UKM) o Bachelo r of Accounting (Honours) , Universiti Utar a Malaysia (UUM ) o Bachelo r o f Accountin g (Honours) , Universit i Isla m Antaraabangs a Malaysia (UIAM ) o Bachelo r of Accounting (Honours) , Universiti Putr a Malaysia (UPM ) o Bachelo r of Accounting Universit i Malaya (UM ) o Diplom a in Accounting, UM (up to examination session 1981/1982 ) The accounting degrees fro m Mulitmedia University and Universiti Tenag e Nasional have also been recognized for MIA membership (Chapman, 2005).

The professional qualification s recognize d by the act are laid out in Part 11 of the First Schedule. The qualifications ar e as follows : o Malaysia n Association of Certified Publi c Accountant s o Institut e of Chartered Accountants of Scotlan d o Institut e of Chartered Accountants i n England and Wales o Associatio n o f Chartered Certified Accountant s United Kingdo m o Institut e of Chartered Accountants i n Ireland

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o Institut e of Chartered Accountants i n Australia o Certifie d Publi c Accountants Australi a o Institut e of Chartered Accountants of New Zealan d o Canadia n Institute of Chartered Accountants o India n Institute of Chartered Accountant s o Chartere d Institute of Managemen t Accountants Unite d Kingdo m

As a result o f the amendment s o f the Accountants Ac t 1967 , MI A ha s se t u p Qualifying Examinations (MI A QE ) to provid e a new avenu e fo r holders o f accounting qualificatio n not recognized unde r the abov e Par t 1 and Part 1 1 o f th e Firs t Schedule o f the Act. Wit h this avenue , thos e wh o hav e th e three-yea r relevan t wor k experienc e an d hol d a qualification relate d t o accountin g o r financ e whic h ar e recognize d b y th e Malaysia n Public Service s Departmen t o f MI A Counci l ma y appl y fo r membershi p afte r the y hav e passed the MIA QE (MIA, 2005) .

MIA membership is categorized into 3 different groups : 1. Chartere d Accountants (previousl y categorize d as Registered or Public Accountants), 2. License d Accountant s (peopl e wh o wer e i n practice a s accountant s vi a t o their vast work experienc e prior to 196 7 but do not possess the recognize d qualification unde r the Accountants Act 1967) , and

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3. Associat e Member s ( generall y accountin g academic s teachin g a t th e various universitie s bu t who ar e otherwise no t qualifie d t o be member s o f MIA) (Crescendo , 2005).

m orde r to hold oneself out as an accountant, one must be a member either as a Chartered Accountant o r a License d Accountant . Wit h this requirement , a registered accountan t i n Malaysia means an accountant registered with MIA as a member.

1.2 Problem Statemen t

Registered accountant s i n Malaysi a predominantl y consis t o f th e thre e majo r races : Chinese, Malays an d Indians. Th e Chinese continue s to dominate the profession, makin g up 76% of the registered accountant s i n year 2002. This i s followe d b y 18 % Malays an d 5% Indian s (Tanzimuddin , 2003) . Accordin g t o th e Presiden t o f MIA , Alia s Samad , Bumiputera accountant s onl y mad e u p 15.8 % of th e tota l accountant s registere d i n th e country (Alias , 1999) . Th e numbe r i s considere d small an d needs t o b e increase d a s part of th e nation' s attemp t t o mee t th e targete d numbe r o f accountant s require d b y th e country in year 2020 (Ekonomi , 2003) .

Currently UiT M i s on e o f th e larges t producer s o f Malay/bumiputer a accountin g graduates i n th e country . Ye t MI A membershi p statistic s showe d tha t u p t o 1998 , onl y 51.38% of it s graduates joined MI A a s a member (Moh d Iskanda r e t al . a. , 2002b) . Thi s

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means that there i s a significant numbe r of UiTM graduate s i n the work marke t wh o ar e not member s o f MI A an d thus , ar e no t accountants . Thi s lead s t o th e questio n o f wh y UiTM accounting graduate s are not registering as MIA members.

1.3 S t u d y O b j e c t i v e s

The purpos e o f thi s stud y is , therefore , mainl y t o identif y th e reason s wh y the y d o no t register wit h MI A an d thereb y becom e accountants . Th e othe r purpos e i s t o obtai n suggestions fro m th e participant s o f th e stud y o n ho w t o encourag e th e qualifie d graduates to join MIA as members.

1.4 S i g n i f i c a n c e o f S t u d y

Many studie s hav e bee n don e t o determin e th e preferre d caree r amon g accountanc y students (Goon , 1975 ; Sai d e t al. , 2004 ) an d th e factor s influencin g thi s caree r choic e (Horowitz an d Riley , 1990 ; Poon , 1993) . However , ther e i s practicall y n o researc h t o determine th e reason s o r factor s tha t discourag e accountin g student s and/o r graduate s from becoming accountants . Understandin g thes e factor s i s very importan t to help UiT M and consequently MIA , formulat e strategie s t o increas e th e numbe r of Mala y accountin g graduates joinin g MI A a s a member . This , i n turn , woul d hel p th e natio n achiev e it s targeted number of accountants by 2020.

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1.5 Organizatio n of the Research Report.

Chapter two o f thi s repor t discusses review s o f previou s literature s relate d t o thi s study . Chapter three describe s th e researc h methodolog y use d i n this researc h an d chapte r fou r presents th e dat a analysi s an d discussio n o f th e findings . Finally , chapte r fiv e provide s the conclusion o f thi s research an d proposes futur e researc h that may b e don e i n relate d areas.


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CHAPTER TWO LITERATURE REVIE W

2.0 Introductio n

This chapte r discusse s th e revie w o f previou s literature s relate d t o thi s study . Th e literatures cove r severa l area s includin g th e rol e o f accountants , students ' perceptio n towards accountin g a s a caree r an d change s i n career s amongs t professionals . Th e literature revie w woul d la y dow n th e groundwor k o f th e importanc e o f th e accountin g profession an d wh y student s chos e t o obtai n a n accountin g education . However , no t necessarily all of the accounting students would end up as accountants.

2.1 The Role of Accountants in Developing the Economy

In a n intervie w wit h Chapma n (2005) , th e Presiden t o f MIA , Dr . Abdu l Sama d Alias , stated tha t a n accountan t i s involve d i n th e managemen t o f financia l information . H e ensures financia l statement s ar e accurat e an d tha t accoun t ledger s an d register s ar e properly maintaine d an d current . Accountant s als o provid e up-to-dat e informatio n an d advice o n day-to-da y managemen t o f cas h flow s an d budgeting , thu s ensurin g greate r efficiency an d increased profitability . Thes e ar e the more traditional role s o f accountants. At th e macr o level , accountant s repor t financia l informatio n t o head s o f governmen t


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institutions an d othe r stakeholder s fo r rationa l economi c decision-making . The y als o provide nationa l incom e dat a an d othe r informatio n necessar y fo r assessin g th e effectiveness o f particula r nationa l developmen t policie s an d th e performanc e o f economies as a whole (Rahaman , 2005).

Changes i n th e economi c environmen t hav e le d t o mor e challengin g role s fo r th e accountants. Th e K-econom y require s accountant s to acquir e ne w skill s t o hel p busines s navigate th e switc h from production-base d econom y t o knowledge-base d economy . Instead o f bein g just provider s o f information , th e accountant s ar e expecte d t o b e mor e involved i n th e busines s an d indirectl y i n th e growt h o f th e economy . Fo r example , accountants wil l hav e t o directl y hel p thei r companies desig n system s tha t would enabl e them to react very quickly to the market (Phang, 2002).

Events, suc h a s th e demis e o f Enron , hav e pu t mor e pressure s o n th e accountant s t o revamp th e professio n s o a s t o b e mor e transparen t an d accountabl e t o th e variou s stakeholders. Accountant s ca n n o longe r depen d solel y o n thei r technica l accountin g knowledge bu t must also acquir e entrepreneurial skill s with high moral, self-integrit y an d ethical values (Mohd Iskandar et al., 2002c).

Could i t b e tha t thes e challenge s hav e a negativ e impac t o n th e numbe r o f accountin g graduates joining the accounting profession, no t only i n Malaysia but in other parts of the world as well?


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2 . 2 Shortag e o f Accountant s

Many countrie s i n th e worl d ar e facin g a shortag e o f accountants . Th e shortag e o f accountants i n Australi a ma y b e sai d t o b e critica l suc h tha t th e federa l governmen t i s placing qualified accountant s o n it s demand lis t of skille d migrants (Levy , 2004) . I n the U.S., a country long regarded as one of the most developed nations in the world, there has been a decade-long declin e i n the number of aspiring CPAs (Schroeder and Franz, 2004). Changes i n busines s condition s an d ne w caree r alternative s wer e cite d a s som e o f th e reasons fo r th e decline . However , th e primar y contributin g factor , quote d i n man y literatures o n accountin g professio n i n th e U S (e.g . Schroede r an d Franz , 2004 ; Billiot , Glandon an d McFerrin, 2004 ) i s th e declin e i n the numbe r o f colleg e accountin g major s as a result o f the increas e i n the examination requiremen t o f ne w CPAs . Apar t from th e above reasons , th e recen t economi c downtur n i n th e countr y hav e force d man y accounting firm s t o reduc e thei r colleg e recruitin g effort s an d they no w fin d themselve s short-handed (Archer, 2004).

In the UK, a shortage of qualified accountant s has triggered a recruitment wa r among the country's to p accountanc y firm s (Evans , 2004) . Evan s quote d Niclo a Grimshaw , a director a t a recruitment fir m a s sayin g tha t the bi g fou r accountin g firm s i n the U K ar e fighting eac h othe r fo r ne w recruit s an d ar e also targetin g mid-tie r firms fo r the m whil e the mid-tier firms themselves ar e looking to add on new staff. .


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If the developing nation s ar e facing a shortage o f accountants , i t would no t be a surpris e for developin g nation s suc h a s Malaysi a t o als o fac e a shortag e o f accountants . A s mentioned earlie r i n Chapte r One , Malaysi a need s 65,00 0 accountant s b y yea r 202 0 (Abdullah, 2001 ) bu t th e numbe r o f accountant s registere d wit h MI A a s a t Marc h 200 4 was only 20,235. Althoug h the shortage i s not critical a t the moment, i t is envisioned that the shortag e woul d becom e critica l a s th e countr y approache s yea r 202 0 i f n o ste p ar e taken t o increas e th e numbe r o f qualifie d accountants . However , unlik e th e US , th e shortage i s no t cause d b y th e declinin g numbe r o f student s enrollin g i n th e accountin g programmes a t th e institution s o f highe r learning . Base d o n th e researc h don e b y Moh d Iskandar e t al . (2002a) , th e numbe r o f enrolmen t fo r th e accountin g programme s hav e been increasing ove r the years. For example, Universiti Utar a Malaysia, on e of the public universities offerin g a Bachelors' s degre e i n accounting , reporte d i n it s 200 2 Annua l Report that its accounting enrolmen t for this programme ha d increase d steadil y fro m 31 1 in 199 4 t o 62 9 i n 2001 . Accordin g t o th e statistic s fro m th e Departmen t o f Highe r Education, Ministr y o f Education , th e accountin g programme s a t the publi c universitie s are amongst th e more competitiv e programme s fo r the 2004/2005 academi c session . Th e other programmes includ e medicine , la w and electronic engineering . Th e intak e o f 1,46 9 accounting student s ranke d secon d t o tha t fo r electroni c engineerin g (Utusa n Malaysia , 28 Ma y 2004)

The increas e i n numbe r o f accountin g student s combine d wit h a decreas e i n th e marke t for accountants cause d by a n employment ga p in Norway (Goin g Globa l Inc , 2004). Th e


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situation canno t b e sai d t o b e th e sam e i n Malaysia a s th e Malaysia n governmen t keep s reiterating the shortage of accountants in the country and is encouraging mor e student s to undertake accountanc y a s their post secondar y choic e o f stud y (Th e Star , 2 8 Sep t 2003) . From persona l observatio n o f th e researcher s fo r thi s study , on e o f th e reason s fo r th e shortage ma y b e th e larg e numbe r o f accountin g graduate s no t registerin g wit h MI A a s members or seeking employment i n the accounting industry .

2.3 Students' Perception of Accounting as a Career

There hav e bee n man y studie s don e o n wh y student s chos e accountin g a s a career . Amongst th e reason s reporte d i n th e numerou s studie s wer e job satisfactio n (Gu l e t al , 1989; Poon, 199 3 an d Said et al., 2004), an d salary (Carpente r an d Strawser, 1970 ; Reha and Lu, 198 5 an d Said et al, 2004 )

(Gul et al., 1989 ) reported that in their survey of first semeste r students from the fields o f accounting, engineering , la w an d medicine , th e accountin g student s pu t a greate r emphasis o n job satisfactio n a s the reason why they choos e accountin g a s a career. Poo n (1993) ha d simila r result . H e compare d th e view s o f th e accountin g professional s an d first semester accountin g graduate s an d foun d tha t both the group s cite d jab satisfactio n was the mai n reason fo r thei r choice o f accountin g a s a profession. A recen t stud y don e by Sai d e t al . (2004 ) o n accountin g undergraduate s o f Malaysia n universitie s als o foun d


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that jo b satisfactio n i s on e o f th e to p thre e reason s wh y the y chos e accountin g a s a profession.

Carpenter an d Strawse r (1970 ) surveye d th e jo b selectio n preference s o f accountin g undergraduates a t the Pennsylvani a Stat e University. The y foun d tha t the students ranked starting salary as one o f the top three factors tha t influenced thei r career preferences. Th e other tw o factor s wer e natur e o f wor k an d opportunit y fo r advancement . Reh a an d L u (1985) conducte d a similar stud y amongs t accountin g major s i n other universitie s i n the United State s i n 1985 . The y foun d tha t salar y wa s th e mai n facto r fo r choosin g accounting a s a career . Similarly , Sai d e t al . (2004 ) i n thei r stud y o n Malaysia n accounting undergraduate s als o foun d salar y a s th e mos t influentia l facto r fo r th e student's career choice a s an accountant.

The AICPA Toplin e Report , a s quoted in Albrecht an d Sack (2000) , showe d th e number of student s undertakin g a Bachelor' s degre e i n accountin g i n America n universitie s ha d declined fro m th e year s 199 0 t o 2000 . Salar y wa s cite d a s on e o f th e reason s fo r th e decline. Albrec h an d Sac k reporte d that startin g salarie s fo r accountin g major s wer e les s for othe r busines s majors . I n 2004 , Billio t e t al . reporte d that th e salarie s hav e no t kep t pace with other business degrees. Othe r reasons reported by Albrecht and Sack (2000) fo r the decline i n accounting enrolmen t wer e student s toda y hav e mor e attractiv e alternativ e careers tha n i n th e pas t an d ther e wa s a lac k o f informatio n an d considerabl e misinformation o n accounting i s and what accountants do.


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Studies i n Malaysia (Goon , 1975 , Samid i an d Tew 1995 ; Hashim e t al, 2003 an d Sai d et al., 2004) showe d tha t accounting professio n i s popula r amongs t student s ove r the years . Goon (1975) studied the career choice o f urban secondary school students . She found that the majorit y o f he r respondents ha d chosen accountin g a s a profession. Samid i an d Te w (1995) conducte d a simila r stud y t o determin e whethe r accountin g i s stil l th e popula r choice amongst the urban secondary schoo l student s after 20 years. They reported that the profession was still the most popular choice.

Hashim e t al . (2003 ) compare d th e caree r choic e betwee n th e Diplom a i n Accountanc y (DIA) student s o f UiT M wit h tha t o f th e DI A student s o f UiTM' s Affiliate d Colleges . They foun d tha t a caree r a s a publi c accountan t wa s th e to p choic e o f th e Affiliate d Colleges' student s and the second choice o f UiTM's students . This study was extended to the accounting undergraduates of the local private and public universities by Sai d et al. in 2004. The y foun d tha t th e accountin g professio n ranke d amongs t th e tw o mos t popula r career choice of both groups of students.

The Malaysian studie s state d abov e showe d that , unlik e i n the Unite d States , accountin g as a profession i s still popula r amongst the students and likewise th e accountin g progra m at th e universitie s i s amongs t th e to p preferre d program s o f study . I n yea r 2000 , Sye d Ismail, Selame t an d Elha m (2000 ) conducte d a surve y amongs t th e matriculatio n (pre university) student s o f th e Matriculatio n Centre , Universit i Utar a Malaysi a (UUM ) an d


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